In the wake of last fall’s Hirst decision by the state Supreme Court requiring counties to approve all well permits — even exempt wells — has already forced one lender to limit the loans it makes on real property in the state.

“Starting Aug. 1 until further notice Washington Federal will not be lending on properties in the state of Washington that have had wells drilled after Oct. 6, 2016. This is a result of the Hirst Decision and the uncertainty it has created with water rights,” reads a Washington Federal internal memo.

The memo was given to Sen. Judy Warnick, R-Moses Lake, who then provided a copy to the Columbia Basin Herald.

The bill passed the senate four times, Warnick said, but the house has yet to vote on the matter because it cannot get past the majority caucus for a floor vote.

“This only applies to wholesale loans, loans we make through brokers,” said Brad Goode, senior vice president of marketing and communications for Washington Federal.

The intent, Goode said, is to protect both customers and the bank given the uncertainty over water rights, since Washington Federal doesn’t repackage or resell its real estate loans.

“We keep every loan on our books,” he said. “We’re more in touch with borrowers when we hold on the loans.”

For consumer real estate loans — loans made directly to Washington Federal customers — Goode said a borrower would need to get certificates from the county that they have an adequate water right in order to secure a loan. (MORE)